our answers to common cobra questions from employers and participants

Answer: COBRA is retroactive to the day after group coverage was terminated.

Question: When can I use my COBRA benefits, after I sent the completed election form and premium to Polestar Benefits COBRA department?

Answer: Depending on the speed of the related carriers that continuation coverage is being elected, reactivating a COBRA participant may take up to 2 weeks

Question: What does a COBRA participant do if they need to visit the doctor and carrier isn't showing coverage as active?

Answer: Communicate with the doctor that you have recently elected COBRA and that there may be a delay in their system.

It is also recommended to have a copy of the COBRA election letter to provide additional proof to the doctor.

Question: When are COBRA premium payments due?

Answer: The first COBRA payment from a participant is due within 45 days of electing COBRA. All remaining COBRA payments are due on the 1st day of the month for the effective coverage, with a 30 day grace period

NOTE-The post mark date on the envelope that has the COBRA premium payment is considered the payment date

free whitepaper: COBRA basics-everyone can use a refresher & a guiding light

COBRA was enacted in 1985, having little changes made to the law in nearly 30 years of existence.

However, the law that hasn't changed much, still is estimated by the IRS of having nearly 90% of employers being out of compliance. Polestar Benefits is serving hundreds of clients to bring them into compliance and stay error free (we have never had a single client be fined while we are their administrator).
Review with our author the basics of COBRA so you to are better informed, highlighting the major areas of concern and what the perspective looks like for COBRA exist when Healthcare Reform is fully implemented.